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CHINA TAISAN TECHNOLOGY GROUP HOLDINGS LIMITED

(Company Registration Number: 200711863D)



RESPONSE TO SGX QUERIES ON THE AUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015



China Taisan Technology Group Holdings Limited (the "Company") has received the following queries from the Singapore Exchange Securities Trading Limited ("SGX-ST") on its audited financial statements for the Financial Year Ended 31 December 2015:


SGX Query 1


In the "Disclaimer of Opinion by Auditors on Financial Statements for the Financial Year Ended 31 December 2015" (the "Announcement") of China Taisan Technology Group Holdings Limited (the "Company") announced on 7 April 2016, the auditors stated that they "are unable to assess the appropriateness of the management's use of going concern assumption in the preparation of the financial statements.."


For the Exchange's consideration under Rule 1303(3)(c) and noting the Independent Auditor's "Disclaimer of Opinion" on the Company's ability to operate as a going concern, please provide the following information:-


  1. the Board's opinion if the Company will be able to operate as going concern and basis for the Board's view.


  2. the Board's confirmation that all material disclosures have been provided for trading of the Company's shares to continue.


    Com pany's response


    1. With reference to Note 2.1 to the annual report, the Board is of the opinion that the Company and the Group will be able to operate as going concern. The directors believe that the Group will be able to meet their obligations as and when they fall due in the next 12 months based on the Group's ability to generate sufficient sales in current challenging market.


    2. The board confirmed that all material disclosures have been provided for trading of the Company's shares.


      3. SGX Query 2


      In relation to the VAT written-off amounting to RMB 110 million, the Independent Auditor had stated that "We were unable to obtain sufficient appropriate audit evidence to ascertain the appropriateness of the write-off".


      Please disclose if the Independent Auditor had been able to ascertain the veracity of the VAT paid and to provide the basis for this opinion.


      Com pany's response


      Auditors performed the test of purchases on a sampling basis. Based on the samples, the auditors are able to ascertain the veracity of the payments made to suppliers, which includes the VAT as stated in the VAT invoices.


      BY ORDER OF THE BOARD


      Lin Wen Chang

      Chief Executive Officer 14 April 2016

    China Taisan Technology Group Holdings Ltd. issued this content on 14 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 14 April 2016 12:11:31 UTC

    Original Document: http://www.china-taisan.com/attachment/201604141954391751588799_en.pdf